This article will discuss how you can increase sales with repeat customers. When the task of increasing restaurant sales comes to mind, we generally think we need to put our focuses on encouraging new customers to visit. However, it is actually a lot easier and less costly to sell to your existing customers, rather than acquiring new ones. Marketing Metrics claim that the likelihood of selling to a regular customer is 50% greater than the probability of selling to a new customer.
In addition, gaining a new customer is said to be six to seven times more expensive than keeping an existing customer. The takeaway here is that while bringing in new diners is vital, the success of a restaurant is determined by its ability to make the most out of its loyal and regular customers. The real question here is, what can you do to boost the frequency at which these repeat customers interact with your restaurant?
Use Loyalty Programs To Increase Sales With Repeat Customers
A study on loyalty programs revealed that when a customer is about to unlock their loyalty reward, they spend 39% more on average. In addition, when customers redeem their loyalty reward, they spend 19% more on average. It does not finish there, on average, visitation frequency boosts by 75% between a customer’s first reward and their tenth reward. In order to get the most out of your restaurant’s rewards program, ensure you select a loyalty program that makes it simple for your customers to sign up, track and use their points.
Use Gift Cards To Increase Sales With Repeat Customers
You should give your loyal, regular customers, the opportunity to buy and receive gift cards to your restaurant. Gift cards are the most popular gift for holidays and birthdays. By offering gift cards, you will introduce a new revenue stream. One that is far more significant than the money made from the gift card sales alone. Data has revealed that 72% of customers will spend more than the value of the gift card. As a result, they spend an average of 20% more than the amount on the card. In order to maximise the value you can get from offering gift cards, choose the right provider. One that allows you to sell both physical and eGift cards, in-store and online.
Use Online Ordering To Increase Sales With Repeat Customers
Online ordering allows your customers to order food from their phones or laptop to their home. It is a great opportunity to encourage repeat customers. However, be aware that third party online ordering services charge commission fees on each order. In addition, they limit your ability to manage the online ordering experience. By offering online ordering on your own website, you will give repeat customers can order from your restaurant directly. Not to mention, you will not have to pay commission for the order.
Customer Relationship Management (CRM)
A restaurant CRM collects and stores information about your customers. This in turn provides you insight into your customer base which you can use to fuel powerful marketing campaigns. It will allow you to easily identify who your best customers are. Then, you can segment the customer database to create lists of customers with shared properties. By using this information, you can easily create marketing campaigns and run promotions. Ones that will engage your customers outside the restaurant and get them back through the front door.
This article discussed how you can increase sales with repeat customers. New customers are important. However, building a loyal customer base is what separates a successful restaurant from an unsuccessful one. By following these tips, you can turn your customers into repeat business.